Mobile payments double in three years

The value of transactions carried out using the mobile payment system is likely to come in at 1.8 trillion won ($1.3 billion), double the figure recorded in 2006.

The mobile payment system allows consumers to buy goods and services by charging them to their mobile phone bill.

According to Danal Co. and Mobilians Inc., which have about 90 percent of the market, the total value of transactions carried out using the mobile payment system is projected to rise 20 percent from last year`s 1.5 trillion won to come in at about 1.8 trillion won this year.

Compared to 2006, the value of transactions projected to be carried out using the mobile payment system is nearly 100 percent higher than the 960 billion won recorded in that year.

Industry sources said that with payments worth 215 billion won and 180 billion won having been made respectively, Mobilians and Danal during the first quarter of the year, this year has already seen significant growth in the market.

Although the mobile payment system was at first used mainly for buying in-game items for online games and other digital content, the system has recently been applied to a wider range of products and services.

Several online shopping malls have begun using the system and some regional governments are allowing residents to use the system to pay for food waste removal fees and other public fees.

In addition, Danal recently formed a partnership with a hospital in Incheon to allow patients to pay hospital fees with their mobile phone. Other items that can be paid for using the system include newspaper subscription fees and university application fees.

The system, which was first introduced in 2000, has also been applied in overseas markets.

Danal first introduced the service in Taiwan in collaboration with Chunghwa Telecom in 2003 and began services in China in collaboration with China Mobile in 2005. In Taiwan, the company`s services also cover cross-border payments. In addition, Danal is also said to be planning to expand into the U.S. market.

By Choi He-suk



(cheesuk@heraldm.com)